When many sellers are involved in selling their products in a market,the market structure may be which of the following?
i.perfect competition
ii.monopolistic competition
iii.monopoly
A) (i) only
B) either (i) or (ii)
C) (ii) only
D) (i), (ii), or (iii)

Question

Quizplus · Accepted Answer

When many sellers are involved in selling their products in a market, the market structure may be either perfect competition or monopolistic competition. In perfect competition, there are many sellers offering similar products, prices are determined by market forces, and there are no barriers to entry or exit. In monopolistic competition, there are many sellers offering products that are slightly differentiated, prices are determined by brand loyalty and marketing, and there are few barriers to entry or exit. Monopoly, on the other hand, involves a single seller dominating the market with no close substitutes, high barriers to entry, and the ability to control prices. Therefore, option D (i), (ii), or (iii) is incorrect as monopoly is not a possible market structure when many sellers are involved in selling their products in a market.

When Many Sellers Are Involved in Selling Their Products in a Market,the